Figure 13-2 -In Figure 13-2 Above,suppose That the Fed Maintains a Constant

question 118

Multiple Choice

Figure 13-2

-In Figure 13-2 above,suppose that the Fed maintains a constant interest rate,commodity prices are fixed,and that commodity demand is unstable ranging from IS₀ to IS₁.Equilibrium real output would then range from

• A)A₀ to A₁.
• B)B₀ to B₁.
• C)C₀ to C₁.
• D)Insufficient information.

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